Today the QQQs, SPY, and DIA, closed near the September 21st lows which we noted as possible support. While we rallied intraday, we also sold off, giving back most of the days upward progress. The VXX also failed to break through the 50-DMA to the upside, but It's... READ MORE
Draft your dream team of stocks! In this week's edition of Chartwise Women, Mary Ellen and Erin share their best practices to screen for stocks that are more likely to outperform the markets once the downward pressure is lifted. They also outline what signals will tell you when... READ MORE
The S&P 500 and the Nasdaq 100 are probably the most discussed charts/indexes. The Dow Jones Industrials is probably the most well known index. From an RRG point of view, the breakdown of the S&P 500 into its sectors is probably the most-watched RRG. But,... READ MORE
I think it's fair to say that most investors look at whether their stock is going up or down in determining whether a stock is being cumulatively bought or sold. That was a big, big mistake back in March as fear-mongering headlines created panic at the opening bell,... READ MORE
Let's start with the 4 major indices, the SPY, QQQ, DIA and IWM. They all sold off today, breaking yesterday's lows. Besides IWM, they are still not below their recent low from September 21st. If the indices continue lower, we should keep an eye on those... READ MORE
What a week to be back hosting another episode of "Your Daily Five". As I'm sure you heard, we held a major LIVE event on StockCharts TV yesterday - "Introducing StockChartsACP: The Future of Technical Analysis". Chip, Dave and I sat down for an... READ MORE
RISING DOLLAR PUSHES PRECIOUS METALS LOWER... With global stocks on the defensive over the last week, some money has flowed into the relative safety of the U.S. dollar. Chart 1 shows the Invesco Dollar Index (UUP) climbing to the highest level in two months. As usually happens when the... READ MORE
In this edition of Trading Simplified, Dave continues to show his methodology in action using actual trades. He goes on to discuss if you should short stocks and illustrates how his new ACP plugin can be used to identify and get aboard great trends. This video was originally broadcast on... READ MORE
Short squeezes can result in explosive upside moves. We saw it at the end of 2019 with Tesla (TSLA). Once the stock broke 400, it absolutely flew to the upside. One reason why was that breakout triggered buying from short sellers, who realized that their losses were unlimited as TSLA... READ MORE
In this edition of Sector Spotlight, I spend the show talking about current market rotations. I begin with the overview of last week's rotations in asset classes and US sectors, then switch to weekly charts to step away from the erratic daily rotations; this way, I can get... READ MORE
Yesterday, Mish talked about watching junk bonds (JNK) to see if the Fed would continue supporting high risk companies. Today, JNK had an inside day. This comes after a large red day where JNK gapped lower, breaking its 104.27-106 range. The break also happened to coincide with a major... READ MORE
I believe it could be. In my Daily Market Report to EarningsBeats.com members, I pointed out a couple very positive short-term developments. First, the S&P 500 pulled back to 3229 yesterday, EXACTLY a 10% correction from its recent all-time high. Extremely bullish sentiment readings suggested that September... READ MORE
In this episode of DecisionPoint, Carl and Erin talk extensively about the current conditions of the SPY and the climactic indicators that suggest a possible selling exhaustion. Erin discusses the "hammer" candlestick and the implications when considered alongside an exhaustion climax. Carl elaborates on his articleabout the "... READ MORE
Coming into Monday, we wrote targets on the S&P 500 and NASDAQ 100. Based on the measured move from the all-time high and the ensuing gap lower (or topping pattern), we shared with you all that the SPY target was 322 and QQQs target was 260. And wouldn&... READ MORE
For many years, the S&P Composite (SPY) has outperformed the MSCI World Stock ETF (ACWI). The benefit of the doubt continues to move in favor of the US, but this relationship has reached a crucial juncture point and needs to bounce; otherwise, some serious technical damage will transpire.... READ MORE
DOW AND S&P 500 HEADING TOWARD 200-DAY LINES... Stocks are selling off all over the world today. With 50-day moving averages having already been broken, 200-day averages are now in play. Chart 1 shows the Dow Industrials approaching their 200-day line (red arrow) which isn't that... READ MORE
The Relative Rotation Graph above shows the rotation for US sectors on a daily basis at the start of this new week (20.09.21). The most important observation that we can make from this image is that the rotation currently is very erratic. The tails do not last very... READ MORE
Stocks that are heavily shorted are stocks that we should generally avoid. There are normally very good reasons, both technically and fundamentally, why a company has so many bets placed against it. Buying stocks that are not performing well simply because they're heavily shorted makes about as much... READ MORE
The week remained largely uneventful for the markets, as they traded in a narrow range and consolidated over the past five days. The trading range also remained very narrow compared to the earlier weeks. The NIFTY witnessed a movement in the band of just 235-odd point while avoiding taking any... READ MORE
The daily bars in Chart 1 show the QQQ breaking last week's short-term support and falling further below its 50-day moving average today. The two upper boxes in Chart 1 also show its RSI and MACD lines continuing to decline. That suggests more selling to come. It now... READ MORE
I've written multiple blogs about my pocket pads and how incessantly I jot down great insights and sustaining concepts whenever and however they cross my path. It's been a daily and profitable habit for decades. Below is a link to a more descriptive past blog about... READ MORE
At EarningsBeats.com, we provide our members with various ChartLists of stocks that we believe could give them an upper hand when trading. This includes our Short Squeeze ChartList, which currently has 79 companies that have short percentage of float above 20%. This means that many traders are betting against... READ MORE
In this episode of StockCharts TV'sThe MEM Edge, Mary Ellen reviews the state of growth stocks and what to be on the lookout for. She also shared top-yielding stocks with highly attractive charts, as well as the best way to screen for candidates in newer, emerging areas of... READ MORE
With companies like Pfizer (PFE) giving possible hope for an end-of-year vaccine and a recent gap up in IBB (the Nasdaq Biotechnology ETF), now could be a good time to keep an eye on newer issues in this sector. Large amounts of buying came into IBB on Friday. The price... READ MORE
Chartists are often faced with a choice: wait for the breakout or anticipate using a mean-reversion setup. The Metals & Mining SPDR (XME) broke out of a bullish consolidation this week and the breakout signals a continuation of its long-term uptrend. Chartists keying off the mean-reversion setup could have anticipated... READ MORE
Last week, after presenting a "diamond in the rough" in Wednesday's Diamonds Report, Carl texted me and said that it looked like a "pig's ear" chart pattern. I had never heard him use this term (yes, Dad, never!) and decided to investigate... READ MORE
NASDAQ 100 TURNS DOWN... The daily bars in Chart 1 show the QQQ breaking last week's short-term support and falling further below its 50-day moving average today. The two upper boxes in Chart 1 also show its RSI and MACD lines continuing to decline. That suggests more selling... READ MORE
Yesterday, we were watching the VXX to gauge fear in the market. Today, it gapped higher and then continued to sell off while the indices gapped lower and began to rise. Now the QQQs, DIA and SPY, while selling off from the highs, had some end-of-day buying comeback, which pushed... READ MORE
As the country has maneuvered through the pandemic, one thing we all can agree on is the need for comfort. In this week's edition of Chartwise Women, Erin and Mary Ellen explain why investing in stocks or products you know can give you investing insight. Walk with Mary... READ MORE
From time to time, I like to review the various sectors to see which ones are in a positive or negative relative trend and which might be in a position to change. To do this, I use what I call my Nirvana Template or, in StockCharts-speak, Nirvana Chart Style. It... READ MORE
MAJOR STOCK INDEXES RETEST LAST WEEK'S LOW... Stocks are under pressure and are retesting lows formed late last week. And are putting 50-day moving averages in jeopardy on daily charts. The tech-driven Nasdaq is leading today's retreat. The hourly bars in Chart 1 show the Invesco... READ MORE
Note This is a copy of today's DMR that I just sent to our members. I believe we're setting up for a HUGE rally in Q4 and the current weakness will provide tremendous opportunities. In the very short-term, however, we need to get through the next... READ MORE
At yesterday's close XLK, the technology sector, rotated into the lagging quadrant. This happened a few times since the market started to rally out of the March low. On the daily chart to be exact. On the weekly RRG, XLK remained far to the right inside the leading... READ MORE
Last night we wondered, is the market correction was over? After all, both SPY and QQQs traded into resistance. For SPY, that number is 342; for the QQQs, it's 282. The DIA had to hold 28,000. Today, SPY tried to clear 342, but wound up closing red... READ MORE
DOW TRANSPORTS NEAR RECORD TERRITORY...The weekly bars in Chart 1 show the Dow Transports rising above their late 2019 peak and challenging their 2018 intra-day peak at 11623. A close above that level would put the Dow Transports in record territory. Their relative strength ratio in the upper box... READ MORE
That's the line spoken by Dirty Harry in Magnum Force right after he blew away his crooked boss. I also personally use that line to curb any tendency toward hubris I might have. For example, if you put me and Greg Morris in the same room, there is... READ MORE
Dave believes in the importance of his methodology in action - what he is really doing and what makes him do it, warts and all. It doesn't work all the time, but does over time. In this edition of Trading Simplified, Dave revisits mystery charts and, introduces some... READ MORE
In this edition of Sector Spotlight, I present the usual look at the rotations for Asset Classes and US Sectors via Relative Rotation Graphs. In addition, the better part of the show is spent on answering questions from the mailbag. These questions range from slowing down animations on RRGs to... READ MORE
Is the market correction over? Although a 10-15% correction is normal, the bigger question is whether the bounce we just saw from recent lows is a sell (rather than buy) opportunity. Both SPY and QQQs are trading into resistance. In SPY that number is 342; for the QQQs, we are... READ MORE
MATERIALS SPDR HITS NEW RECORD... Stocks are trading higher today with ten of eleven sectors in the green. The only one to hit a new record is shown below. Chart 1 shows the Materials SPDR (XLB) trading at a new record high. Its relative strength line in the upper box... READ MORE